October 22, 2015

DRAFT 2016-2020 Financial Plan v1

Agenda:1. Where we are in the process….. 2. Financial Plan Context3. Decision Packages

a) New Services/Programsb) Enhanced Services/Programsc) Sustaining

4. Draft 2016-2020 Financial Plan Highlights5. Pending Decisions

a) Garbage Pickup Automationb) Parking Services Modelc) Fire Services

6. 2016 Operating Budget 2017-2020 Plan7. 2016 Capital Budget and 2017-2020 Plan8. Next steps……

Where we are in the process.....1. Business Case Presentations:

a) IT Support Staffb) RCMP Support Staffc) Solid Waste Automationd) RCMP Staffinge) Fire Services

2. Strategic Updates:a) Transportation Planb) Land Acquisitionc) Financial Reserves Policy Updated) Revenue Policy Updatee) Asset Managementf) Water Services

3. DRAFT 2016-2020 Financial Plan v1

Financial Plan Context

1. Economic Climate2. Federal Elections3. BC Province Budget Performance4. City of Nanaimo Core Service

Review

Draft 2016-2020 Financial PlanHighlights1. 2016 Status Quo Budget. (2015-2019 Financial Plan)

– $135M Operating Budget2. 1.7% Property Tax Increase in 2016 including 1% for

Asset Management.3. Estimated $1.2M in new property tax revenue from

Assessment Growth.4. User Fee Rates in 2016;

– 7.5% increase for Water (2.5% for asset management)– 5% for increase for Sewer in 2016 and 4% thereafter

through 2020 for Asset Management– 1% for Garbage

5. No new services or programs in 2016.6. Investment of $37M in capital assets in 2016 and

$143M over the next four years through 2020.

Pending Decisions

1. Garbage Pickup Automation2. Parking Service Model3. Fires Services

DRAFT 2016 Operating Budget and 2017-2020

Operating Plan v1

2016-2020 Projected Property Tax Rate Increases

Budget Appropriation Decision Packages1. New Services. (Council has total discretion)

– New Program or Service.– Supported by a business case.

2. Enhanced Services. (Council has limited discretion)

– Current Program or Service.– Service or Program extension due to changes in

delivery method or response to population growth.– Supported by a business case.

3. Sustaining. (Council has very limited discretion)– Cost pressures due to inflation or contractual obligations or

maintenance needs.

2016 Budget Operating Fund Cost Pressures1% Property Tax Revenue = $985,000

Decision Package Amount$

Property Tax Rate Equivalent

New Services - 0 - 0%Enhanced Services 756,678 0.8%Sustaining Costs 2,797,552 2.8%Total 3,554,230 3.6%

2016 Operating Budget Cost PressuresEnhanced Services

Cost Object Amount PTIE*IT – 1 FTE 104,443 0.1%RCMP Support – 1 FTE 72,235 0.1%RCMP – 4 New Members 580,000 0.6%Total 756,678 0.8%* Property Tax Increase Equivalent

2016 Operating Budget Cost PressuresSustaining Costs

Cost Object Amount PTIE*General Asset Management 985,000 1.0%Other Expenses 50,000 0.1%Labor Contracts 974,106 1.0%RCMP Contract 301,232 0.3%GIS Temp Position 46,000 0.0%Contracted Services/R&M 124,056 0.1%Utilities 308,558 0.3%Equipment Reserve 180,600 0.2%Internal Efficiencies (172,000) (0.2%)Total 2,797,552 2.8%* Property Tax Increase Equivalent

2016 Operating Budget Funding Plan

Cost /(Revenue) Object Amount PTIE*Total Cost Pressures 3,554,230 3.6%Internal Revenue Growth Fortis Agreement (525,000) (0.5%) Grants in Lieu (120,013) (0.1%) Building Permits (32,000) (0.0%) Parks, Recreation & Environment (168,000) (0.2%) Revenue Reductions (VICC & City Property Rentals)

126,265 0.1%

Property Tax Revenue from Assessment Growth

(1,200,000) (1.2%)

Net Funding Requirement 1,626,624 1.7%* Property Tax Increase Equivalent

Draft 2016 BudgetImpact to a Typical Household

PROPERTY TAXES 2015 increase2016

Estimated $ %

Assessment * 331,136 1.33% 335,540

Tax rate - municipal only (includes library) 5.9206 per Rev Srvcs Rate Sheet

Property taxes ** 1,960.52 1.70% 1,993.85 33.33 1.7%

USER RATES ***

Water consumption - 220 gal/day 413.36 7.50% 444.36 31.00 7.5%

Sewer charges 112.28 5.00% 117.89 5.61 5.0%

Garbage charges 99.75 100.75 1.00 1.0%Total user rates 625.39 663.00 37.61 6.0%

Total Property Taxes & User Rates 2,585.91 2,656.85 70.94 2.7%

City of NanaimoEffect of Draft 2016 Budget on a

Typical Home with Average Water Consumption

Budgetincrease

DRAFT 2016 Capital Budget and 2017-2020

Capital Plan v1

Draft 2016-2020 Financial PlanAll Funds - $180M

Draft 2016-2020 Financial PlanCapital Budget Funding Sources - $180M

Draft 2016 Capital Budget$37M

Draft 2016 Capital Budget Funding Sources - $37M

Draft 2017 Capital Plan$143M

Next Steps.....• 2015-DEC-14 – 2016-2020 Financial Plan Bylaw

3 Readings plus Online Engagement Feedback• 2015-NOV-25 – End Online Engagement• 2015-NOV-23 – 2016-2020 Draft Financial Plan

v2 Presentation plus Budget e-Town Hall• 2015-NOV-18 – Council Budget Workshop• 2015-NOV-09 – 2016-2020 Draft Financial Plan

v1 Presentation• 2015-NOV-06 – Publish 2016-2020 Draft

Financial Plan Package• 2015-NOV-06 – Launch Online Engagement

Citizen Budget Examples

Citizen Budget Examples, cont’d…

October 22, 2015

DRAFT 2016-2020 Financial Plan v1